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By: citybiz
August 22, 2025

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Arlington Capital Partners Stitches 3 GovTech Firms into Neumo to Push Unified Cloud Platform

Arlington Capital Partners has launched Neumo, a cloud-based platform designed to streamline government software and payments, by merging Avenu Insights & Analytics and Intellectual Technology Inc. with the newly acquired GovOS. The move stitches together three GovTech incumbents to deliver a unified suite that spans public administration, DMV systems, revenue compliance, justice and integrated payments.

Neumo is led by former Avenu CEO Paul Colangelo. The company serves more than 4,500 public sector customers across all 50 states. In Arlington’s rollout, the Neumo brand signals a deliberate push to meet governments where they are — digitally, securely, and at scale. The company and its backers term the formation as a modernizing thrust for government services nationwide.

“The need to modernize government represents a historic opportunity,” Colangelo said, underscoring a broad drive to improve citizen experiences through omnichannel, integrated software. Private equity firm Audax partner Tim Mack called the outcome a strong future for GovOS and the broader platform.

The merger builds on a string of Arlington bets in GovTech. Arlington acquired Avenu Insights & Analytics in October 2023, a Centreville, Va.–based provider of revenue-management and administrative software for state and local authorities. Avenu’s catalog includes revenue discovery and recovery services to spot under-reported taxes, digital government solutions for online service portals, and financial systems for budgeting and payroll — businesses that scale with government demand for digital, auditable operations.

The deal, which kept Colangelo at the helm of Avenu, is in line with Arlington’s strategy of assembling a broad GovTech platform built around recurring revenue and digital transformation. Earlier, Arlington had bought Intellectual Technology in 2019, a Fort Wayne, Indiana–based DMV software and self-service hardware outfit offering kiosks, title and registration systems, and print-on-demand licensing solutions. The Avenu and ITI acquisitions culminated in Neumo’s formation, with GovOS joining the platform after Audax’s exit from GovOS via a 2023 spinout. Arlington’s ongoing capital plan supports scaling this vision, including its Fund VI, which closed at $3.8 billion in January 2024, the firm’s largest fund to date.

The deal cycle and capital backdrop illustrate the GovTech market’s momentum. McKinsey data released in 2025 underscore accelerating demand for cloud-native government software, cybersecurity, and scalable digital services, a trend that investors are betting on to deliver durable, recurring revenue. Arlington’s strategic minority investment by Goldman Sachs through the Petershill program reinforces the capital runway for Neumo while preserving management control. Industry observers note that the combination of three proven GovTech platforms could accelerate cross-sell opportunities and faster product modernizations for agencies at the federal, state, and local levels.

The Neumo platform arrives at a moment when governments are increasingly pursuing digital-first agendas to improve accessibility and efficiency. Colangelo emphasized that, with Neumo, governments will “deliver for the people and businesses they serve, all at scale,” while Lustbader of Arlington noted the team’s track record in building scalable GovTech platforms that gain rapid adoption.

The post Arlington Capital Partners Stitches 3 GovTech Firms into Neumo to Push Unified Cloud Platform appeared first on citybiz.

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